Cloud computing company Workday, Inc. (NASDAQ: WDAY) has announced financial results for the third quarter of fiscal 2026, reporting a 12.6% increase in revenues.
- Third-quarter revenue was $2.432 billion, an increase of 12.6% from the prior-year quarter; Subscription revenue rose 14.6% to $2.244 billion
- Earnings, on a per-share basis, increased to $0.94 in Q3 from $0.72 in the corresponding period last year
- Adjusted earnings per share moved up to $2.32 in the third quarter from $1.89 in the same period of FY25
- Operating income was $259 million in Q3, or 10.7% of revenues, compared to $165 million a year earlier
- 12-month subscription revenue backlog was $8.21 billion, up 17.6% from the prior-year period
- Operating cash flows rose to $588 million in the October quarter from $406 million in the prior-year period
- During the quarter, Workday repurchased around 3.4 million shares of its stock for $803 million
- For the fourth quarter of FY26, the management expects Subscription revenues to be $2.355 billion, representing a 15.5% growth
- The guidance for the adjusted operating margin for the fourth quarter is at least 28.5%
- For fiscal 2026, the company expects Subscription revenues of $8.828 billion, and adj. operating margin of 29%
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